Ferrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below:
Sales revenues, Consumer $680,000
Sales revenues, Commercial $298,000
Variable expenses, Consumer $388,000
Variable expenses, Commercial $131,000
Traceable fixed expenses, Consumer $100,000
Traceable fixed expenses, Commercial $30,000
In addition, common fixed expenses totaled $181,000 and were allocated as follows: $110,000 to the Consumer business segment and $71,000 to the Commercial business segment.
The contribution margin of the Commercial business segment is:
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